Powell does not see corporate leverage rising to systematic risk level

Author: Greg Michalowski | Category: Central Banks

Collateralized loan obligations (CLO) concentrated in market-based vehicles, not banks

  • Does not see corporate debt rising to the level of systematic risk
  • Most CLO debt concentrated in market-based vehicles, not banks
  • Most CLO debt is not runnabe, though some mutual funds could see accelerated withdrawals
On the dollar as a reserve currency, Powell says:
  • being reserve currency has benefits and costs
  • one cost is a lack of fiscal discipline
  • Does not see near-term risk to dollar as reserve currency
  • Don't assume USD status as reserve currency permanent
  • US needs to address longer-term fiscal issues

ForexLive
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose